7 African countries with the strongest growth in pension fund assets

The report focused specifically on pension fund assets in 68 countries or reporting jurisdictions, comprising 38 OECD countries and 30 non-member countries from Eastern Europe, Asia and Africa. The report said in several parts:

“Overall, pension fund assets amounted to $38.5 trillion in a total of 68 reporting jurisdictions at the end of 2021. Most of these assets were held by pension funds in the OECD area, for a total of $37.7 trillion pension fund assets ($22.6 trillion), followed by the UK ($3.6 trillion), Australia ($2.3 trillion), the Netherlands ($2 trillion USD), Canada (USD 1.7 trillion), Japan (USD 1.5 trillion) and Switzerland (USD 1.2 trillion).These seven countries together held 92.4% of pension fund assets in the OECD area.

As always, at Business Insider Africa, we focus on the top seven African countries. We will reveal them shortly. But first, let’s talk briefly about what a pension fund is.

According to The Balance, pension funds are investment pools that accumulate wealth for the purpose of paying for workers’ retirement. Generally, pension funds are contributed by both workers and their employers, especially in African countries where mandatory pension schemes exist.

Pension fund managers invest in different asset classes such as stocks, fixed income assets such as bonds, treasury bills and corporate bonds, collective investment schemes (CIS0, etc.

Below are the seven African countries with the highest growth in pension fund assets, according to the OECD. The list is presented in no particular order of priority.

  1. Egypt: Egypt’s pension fund assets grew by 8.0% to $6.2 billion, representing 1.5% of the country’s GDP in 2021.
  2. Ghana: Ghana’s pension fund assets grew by 27.2% to $4.7 billion, representing 6.3% of the country’s GDP in 2021.
  3. Kenya: The country’s pension fund assets grew by 10.6% to $13.7 billion, accounting for 12.9% of the country’s GDP in 2021.
  4. Namibia: The Southern African country’s pension fund assets grew by 17.6% to $11.8 billion, representing 103.0% of the country’s 2021 GDP.
  5. Nigeria: Nigerian pension fund assets grew by 9.1% to $32.6 billion, or 7.6% of the country’s GDP.
  6. Uganda: Ugandan pension fund assets grew by 15.8% to $5.3 billion, representing 12.4% of the country’s GDP.
  7. Zimbabwe: Zimbabwe’s pension fund assets grew by 285.8% to $2 billion, or 7.6% of GDP.

Dolores W. Simon